Like most cell phone providers, Verizon runs a credit check for contracted plans that offer discounted or free phones. Verizon uses these check to determine if the potential customer is likely to make prompt payments that eventually cover the cost of the phone.
Potential customers who are not eligible for a full discount may want to consider buying the phone outright. Prepaid plans offer greater flexibility, do not require a contract and do not include monthly fees to recover the cost of the discounted phone. Customers who want a contract plan may get approval if they bring their own phone since Verizon does not need to recover the cost of the handset.